MVNO

Virgin Mobile USA confirms Helio acquisition

Jason Ankeny — Fri, 27 Jun 2008 10:05:52 -0400

Virgin Mobile USA officially confirmed it will acquire rival MVNO Helio from SK Telecom and EarthLink. Per terms of the deal, SK and EarthLink will receive limited partnership units equivalent to 13 million shares of Virgin Mobile USA class A common stock, valued at $39 million based on June 26 closing prices. The transaction is expected to close in the third quarter. Parent firm Virgin Group and SK Telecom will also invest $25 million each of equity capital in the post-merger Virgin Mobile USA--through its holding of limited partnership units and preferred stock, SK Telecom will own approximately 17 percent of Virgin Mobile USA, and will take two seats on the company's board of directors.

The deal enables Virgin Mobile USA to transition into the postpaid subscriber market-- last month, the MVNO reported first quarter net income of $4.8 million, down 75 percent year-over-year, and announced anticipated Q2 subscriber losses between 130,000 and 160,000. According to Virgin, roughly 20 percent of those lost subscribers move on to postpaid operators. Helio reported in January subscriber totals approaching the 200,000 mark, with ARPU of roughly $80. The acquisition also allows Virgin to add a suite of new data applications and services, including partnerships with YouTube, Google and MySpace.

Virgin Mobile USA will also revise its network capacity agreement with Sprint Nextel, and said it expects to achieve a minimum of an 8 percent reduction in its effective cost per minute in 2009, with further reductions over the next three years. The new deal means Virgin Mobile USA's cost per minute is now tied directly to the volume of network traffic it generates, and will no longer be dependent on Sprint's network costs. According to Virgin, the new volume discount structure allows additional flexibility in pricing--moreover, effective July 1, Sprint will provide a $2.50 network usage credit to Virgin for each gross customer addition, with a cap at $10 million.

Some may suggest Helio's demise heralds the official end of the MVNO era. But as long as P Diddy lives, MVNOs will never die.

For more on the Virgin/Helio deal:
- read this release

Related articles:
EarthLink loses $111.3M on Helio in 2007
Sky Dayton resigns as Helio CEO

Helio planning to close stores, kiosks

Jason Ankeny — Mon, 23 Jun 2008 10:58:40 -0400

Goodbye, Helio: Gizmodo is reporting the embattled MVNO is on life support after merger negotiations between parent firm SK Telecom and Virgin Mobile USA stalled. According to reports, Virgin's continued interest hinges on either a bankruptcy declaration or massive liquidation--in the meantime, Helio is planning to begin closing its retail locations and kiosks. Even if an official merger fails, reports suggest that remaining Helio subscribers will be migrated to the Virgin Mobile network.

For more on the Helio rumors:
- read this Gizmodo article

Related articles:
EarthLink loses $111.3M on Helio in 2007
Sky Dayton resigns as Helio CEO

Amp'd head Adderton resurfaces with Agency 3.0

Wed, 21 May 2008 06:59:57 -0400

Almost a year after Amp'd Mobile filed for Chapter 11 bankruptcy protection, the failed MVNO's founder and CEO Peter Adderton is resurfacing at the helm of digital media firm Agency 3.0, a multi-platform strategic content developer and marketing venture backed by entertainment representation giant the William Morris Agency. Agency 3.0 promises to work with content providers, advertisers and brands to design, implement and monetize digital media efforts, and will work alongside WMA's Consulting and Digital Groups to identify potential projects and opportunities. Adderton will serve as Agency 3.0's CEO and lead the company's mobile practice.

For more on Agency 3.0:
- read this release

kajeet draws up content deal with Cartoon Network

Tue, 20 May 2008 06:59:57 -0400

Tween-focused pay-as-you-go MVNO kajeet announced an agreement with Turner Broadcasting System to add Cartoon Network mobile content from hit cable series including Ben 10: Alien Force, Chowder, The Grim Adventures of Billy & Mandy and The Powerpuff Girls. The deal adds Cartoon Network ringtones, wallpapers and games to the kajeet premium content catalog, which also includes tween-centric mobile media from partners including AOL, Electronic Arts and Glu Mobile.

For more on the kajeet/Cartoon Network deal:
- read this release

Related articles:
kajeet inks mobile IM deal with Comverse
Cartoon Network teams with Smashing Ideas
Nokia snags Cartoon Network

APC Wireless acquires Movida

Mon, 21 Apr 2008 06:59:58 -0400

Wireless logistics and fulfillment solutions provider APC Wireless announced its Cozac LLC subsidiary acquired Latino-focused MVNO Movida. Financial terms were not disclosed. According to APC, Movida's rate plans and subscriber contracts will remain the same post-acquisition, but the user experience will improve thanks to APC's strengths in handset fulfillment and software customization services. "Our strong growth plans for Movida in the Latino market should signify another vote of confidence in the MVNO market," said APC Wireless COO Samuel Bahreini in a prepared statement.

(Hold on--there was an earlier vote of confidence in the MVNO market?)

For more on the APC/Movida deal:
- read this release

Related article:
Movida rakes in $40 million

MVNO service provider Sonopia shutting down

Tue, 08 Apr 2008 06:59:59 -0400

Sonopia, the do-it-yourself MVNO venture enabling organizations, charities or individuals to launch branded mobile services through its online service, is reportedly winding down operations. On his blog, Tapio Anttila--managing partner of digital media consultancy Brauning LLC and a onetime Sonopia senior exec--reports that Sonopia laid off its existing U.S. staff at the end of March, and "reached an amicable resolution with existing marketing partners to transition subscribers it had acquired."

Launched in April 2007 by Juha Christensen, the former head of Microsoft's mobile division and a founder of Symbian, Sonopia promised each fledgling MVNO a selection of popular handsets, competitive calling plans, premium voice and data services and customized content, including social networking functionality--each sponsoring group received 5 percent of the revenue collected from its subscribers, with Sonopia sharing the remainder with network partners Verizon Wireless and Vodafone Group. Partners spanned from the National Parks Conservation Association to the American Medical Student Association to the Chicago Bandits of the National Pro Fastpitch Women's Softball League.

For more on Sonopia's demise:
- read Tapio Anttila's blog entry

Helio adds GoTV mobile music channels

Thu, 27 Mar 2008 07:59:56 -0400

Mobile media network GoTV announced an agreement with Helio to deliver an integrated music service to the MVNO's subscribers. GoTV will provide Helio with on-demand, made-for-mobile music magazines including Rock: On Altitude and Hip Hop Official, promising access to music news, charts and tours as well as clothing and lifestyle updates. The deal also includes GoTV's fledgling ES Musica mobile channel, which features daily news, music videos, interviews and live performances spotlighting Latin pop, rock, hip-hop and reggaeton. GoTV will produce daily segments from its mobile media network studios in Sherman Oaks, California.

For more on the GoTV/Helio deal:
- read this release

Related articles:
Opera Mini goes surfing on Helio's Ocean
Helio gets Buzzd
Helio adds online content, feels the Heat

Boost launches mobile ad platform

Wed, 19 Mar 2008 07:59:58 -0400

Sprint's Boost Mobile division announced a partnership with mobile advertising solutions provider Amobee Media Systems to launch a new mobile advertising platform targeting the MVNO's 4.6 million subscribers, the majority of whom are under the age of 30. Mobile ads will first appear on Boost Mobile's BoostLIVE digital storefront and Web Home page, with advertising efforts scheduled to expand to messaging and other applications in the near future. Boost consumers are not charged for viewing the ads, and may opt out of the program by calling Boost customer service. Automaker Acura and motion picture distributor Fox Searchlight Pictures are the first advertisers to sign on with the Boost platform. "Mobile advertising is an excellent vehicle for reaching a growing segment of younger consumers who are drifting away from traditional mediums such as TV and print," said Boost Mobile VP of product development Neil Lindsay in a prepared statement. "The unique advantage Boost Mobile offers advertisers is access to today's under 30 audience, a massive and growing crowd of consumers who are more likely to embrace advertising on their wireless phones."

For more on the Boost/Amobee deal:
- read this release

Related articles:
Amobee, Funambol team on ad-funded email
Amobee teams with beeweeb for ad-funded music, TV
Player X partners with Amobee on ad-funded games
Exit enters mobile ad agreement with Amobee

Opera Mini goes surfing on Helio's Ocean

Wed, 19 Mar 2008 07:59:56 -0400

Web browser development firm Opera Software announced its first U.S. mobile service provider deal with MVNO Helio, which will launch a specially-tailored version of the Opera Mini mobile web browser exclusive to its Ocean dual-slide smartphone. Opera Mini is available now as a downloadable application via Helio's web portal. "We're always looking to give our members their choice of great applications so we're excited to be the first service provider in the U.S. to make Opera Mini an on-deck option," said Helio vice president of service management Doug Britt in a prepared statement.

For more on the Helio/Opera deal:
- read this release

Related articles:
Google again Opera's mobile search du jour
Opera 9.5 SDK for Devices released
Opera debuts Mini 4 mobile web browser

ALSO NOTED: Disney Mobile MVNO launches via Japanese operator Softbank; Social.FM inks distribution deal with Handmark; and muc

Mon, 03 Mar 2008 06:59:53 -0500

> Disney Mobile MVNO launches via Japanese operator Softbank. Article

> Social.FM inks distribution deal with Handmark. Release

> Tira Wireless rolls out new distribution service. Release

And finally…Monkey terrorizes Spokane. Article

Helio losses grow, but so do revenues

Fri, 29 Feb 2008 06:59:59 -0500

Mobile virtual network operator Helio continues to hemorrhage cash … but on the bright side, its 2007 revenues increased 264 percent over the previous year. In its annual report to the SEC, Internet service provider EarthLink, which launched Helio in conjunction with Korean mobile operator SK Telecom, notes Helio lost $327 million in 2007 against $171 million in revenue; a year ago, the MVNO posted losses of $192 million on $47 million of revenue, which combined with 2005 losses of $42 million means Helio has now posted total losses of $560 million in three years. Helio ended the fourth quarter with slightly more than 180,000 subscribers, a 28 percent increase over Q3 totals. But while revenue still exceeded Helio's $140-$170 million guidance, and losses fell shy of its $340 million to $360 million guidance, EarthLink admits in the SEC filing it "may not realize the benefits we sought from our investment in the Helio joint venture."

The EarthLink filing goes on to note "We have made $210 million of cash investments in Helio. The financing of Helio's operations has adversely affected our cash position. In addition, Helio will require additional funding in the future and Helio has incurred losses and we expect Helio to continue to incur losses. In addition, Helio may not be successful in implementing and marketing its wireless voice and data initiatives, and there can be no assurance that these initiatives will be commercially successful. We cannot assure you Helio will be able to achieve or maintain adequate market share or revenue or compete effectively."

For more on Helio's 2007 results:
- read this Silicon Alley Insider article

Related articles:
Helio gets Buzzd
Sky Dayton resigns as Helio CEO
SK Telecom pumps another $270M into Helio

ALSO NOTED: China Mobile mulling U.K. MVNO?; ARM promising mobile 3D gaming; and much more...

Thu, 21 Feb 2008 06:59:53 -0500

> China Mobile mulling U.K. MVNO? Article

> ARM promising mobile 3D gaming. Article

> Intercasting inks social networking deal with Hong Kong operator CSL. Release

And finally…Clowns struggle to accept the fact they scare the crap out of kids. Article

Virgin Mobile USA: Ringbacks on the rise

Tue, 19 Feb 2008 06:59:58 -0500

According to Virgin Mobile USA and content partner LiveWire Mobile, more than 100,000 of the MVNO's five million customers now subscribe to its ringback services, with an average of two ringbacks per consumer. LiveWire now supplies Virgin Mobile with a catalog of more than 10,000 different ringbacks in all, with hip-hop and R&B dominating sales. Popular ringbacks include the Dream's "Shawty Is a 10," Keyshia Cole's "Heaven Sent" and Soulja Boy's "Crank That--Tell 'Em."

For more on Virgin's ringback success:
- read this release

Related articles:
Ringback boom--or bust?
BMI: Ringtone "novelty phase" fading out

Disney debuts ad-supported mobile portal

Thu, 14 Feb 2008 06:59:55 -0500

The Walt Disney Internet Group launched a new ad-supported mobile content portal, Disney.co.uk. The Mouse said the portal features Disney Arcade, which offers about 60 games, the majority of them free. Other dedicated areas of the site feature movies, music, TV and community features, with jump navigation enabling single-click movement between them. Besides an emphasis on popular Disney franchises including Hannah Montana and Pirates of the Caribbean, WDIG also promises a "distinct" editorial style, enabling users to build and interact with social communities and personalize the site. Disney said it is working with operators to make the portal accessible directly via their branded portals. "Disney is uniquely positioned to provide this type of service because our customers engage not only with our extensive range of entertainment experiences, but with our brand itself--which is trusted to deliver high quality family entertainment," said WDIG's senior VP and managing director for EMEA Cindy Rose in a prepared statement.

For more on the Disney WAP portal:
- read this release

Related articles:
Disney expands European mobile gaming efforts
Disney signs on with Softbank for Japanese MVNO
Walt Disney to launch MVNO in U.K.

Helio gets Buzzd

Wed, 06 Feb 2008 06:59:58 -0500

Mobile virtual network operator Helio announced an agreement which local entertainment service provider Buzzd, which provides real-time, location-based information for area bars, clubs and restaurants. Spanning events and venue in all major U.S. cities, Buzzd features editorially-driven information aggregated via partnerships with Flavorpill, TimeOut New York and CitySearch as well as user-generated reviews and ratings from friends and other Buzzd community members--the service also enables subscribers to find and message friends. "The partnership is exciting as both Helio and Buzzd are using mobile technology to connect people with local entertainment around them," said Buzzd co-founder and CTO Deepen Shah in a prepared statement.

For more on the Helio/Buzzd deal:
- read this release

Related articles:
Sky Dayton resigns as Helio CEO
SK Telecom pumps another $270M into Helio
Helio adds online content, feels the Heat
Helio reveals plans, partners for mobile gaming

Sky Dayton resigns as Helio CEO

Tue, 29 Jan 2008 06:59:58 -0500

Mobile virtual network operator Helio announced that founding CEO Sky Dayton has resigned his post, with president and COO Wonhee Sull named as his replacement. Dayton was appointed non-executive Chairman of Helio's Board of Directors. The company said he will remain actively involved in shaping its strategy and initiatives. "Helio has reached a point in its development where I feel the timing is right for this change," Dayton said in a statement.

Dayton's move will no doubt further speculation that EarthLink (the ISP he founded in 1994) is planning to sell its stake in Helio, which it launched in association with Korean operator SK Telecom. Last fall EarthLink president and CEO Rolla Huff reiterated the company's commitment to Helio: "I think that the investment that we've made there absolutely has value," Huff insisted at the time. "We have no plans to go out and sell it. It's a growing business. It's a business that we support."

In announcing Dayton's resignation, Helio also reported usage statistics for its nearly 200,000 subscribers, claiming an ARPU of $85 and a 2007 revenue run rate of over $240 million based on December actuals. Helio also reported:

An average of over 550 text messages per member per month
95 percent of subscribers access the web via mobile device
Each month, 60 percent of subscribers access MySpace via Helio and average nearly 500 page views
In December, subscribers uploaded photos from their device to the web at a rate of five times the industry average
57 percent of Ocean users downloaded Helio's exclusive YouTube application within two weeks of its launch

For more on Dayton's resignation:
- read this release

Related articles:
SK Telecom pumps another $270M into Helio
Helio squashes rumors of massive layoffs
Helio to succeed where Mobile ESPN failed?
Helio adds online content, feels the Heat
Helio reveals plans, partners for mobile gaming

SPOTLIGHT: Mouse hunt

Wed, 23 Jan 2008 06:59:54 -0500

Why Disney's new Japanese MVNO will target adult women instead of children. Article

Disney to launch Japanese MVNO on March 1

Tue, 22 Jan 2008 06:59:55 -0500

The Walt Disney Co. announced it will launch its Japanese MVNO service Disney Mobile on March 1. The service will roll out in conjunction with Japanese operator Softbank Mobile--handset maker Sharp will produce three devices for the launch, each emblazoned with silhouette patterns of Mickey Mouse. The Japanese MVNO's scheduled debut follows roughly six months after Disney pulled the plug on its U.S. Disney Mobile venture. In an interview with AFP, Walt Disney Internet Group Asia-Pacific VP Duncan Orrell-Jones blamed the venture's failure on a business model "where we did everything on our own," and said the Softbank partnership is a "much more powerful model that gives us collaboration across everything from handsets to service to distribution."

For more about Disney's Japanese MVNO launch:
- read this AFP article

Related article:
On the Hot Seat with Disney's Larry Shapiro

Virgin Mobile USA names Bob Stohrer CMO

Thu, 17 Jan 2008 06:59:56 -0500

Virgin Mobile USA announced the resignation of longtime CMO Howard Handler, with the MVNO naming VP of brand and integrated marketing Bob Stohrer his replacement. Both Handler and Stohrer joined Virgin Mobile USA at the company's 2003 launch--Stohrer previously served as vice president and creative director at National Football League Properties. "Howard has been one of the key architects of Virgin Mobile USA, helping to guide and shape many aspects of the company over the last five years," said Virgin Mobile USA CEO Dan Schulman in a prepared statement. "I wish him the very best of luck in the next phase of his career."

For more on Virgin's CMO shuffling:
- read this release

Related articles:
Virgin Mobile reports 30 percent growth in data
Virgin Mobile spreads messaging via 3jam SMS 2.0
Virgin Mobile USA planning $500 million IPO
Virgin Mobile USA: Still room in the youth market

uLocate acquires Buddy Beacon brand from Helio

Fri, 11 Jan 2008 06:59:56 -0500

Location-based services developer uLocate Communications announced its acquisition of the Buddy Beacon friend-finder brand from struggling MVNO Helio. Financial terms were not disclosed. Introduced by Helio in partnership with uLocate in 2006, Buddy Beacon leverages location-based technology to enable users to share their location with personal contacts via mobile device--per terms of the deal, uLocate and Helio will continue to collaborate on improving and expanding the service.

For more on the uLocate/Helio deal:
- read this release

Related articles:
Alltel, uLocate team for WHERE
SK Telecom gains control of Helio
SK Telecom pumps another $270 million into Helio